Scalping at Forex
Are there some terms that you have heard quite often in the forex world and in forums, but still have not fully understood? That does not matter, that’s normal. Especially if you are still a beginner in this field. However, it would be disturbing if you do not learn new things, do not get new ideas, and do not want to try new strategies. Because only if you try new things and develop your skills, the big profits will eventually come closer and be achievable. Scalping is such a new thing, a strategy that you can try, a term that’s been heard many times in the clique, from people who have progressed much further than you. You may or may not have this strategy need to be skipped, either or you can focus on it now and try to understand that strategy – that’s not hard at all! And best of all, you can do so by relying on our detailed and ultimate guide to understanding and using scalping in traditional online financial trading. Let’s go!
What is Scalping, and how exactly does it work?
Scalping is one of the most used and preferred strategies in the forex world. In addition to hedging, scalping remains the preferred alternative for many traders for better trades – among them experienced and real professionals in the field. In short, scalping is mainly used for foreign currency pairs, commodities and securities. When a trader decides to scalpen, he simply does what a specialist or real market maker does. He buys the bid price and sells the ask price. If it works, the scalping will reward you with the difference between the bid amounts and the asking value. So if you scalp, even in cases where there is no movement, you will not benefit from either the bid or the demand. In order to be able to implement the scalping strategy, it is important that you have a good and trusted access to market makers, with a platform that allows very fast buying or selling. In short, it’s best to look for the option of automatically executing your transactions.
What can influence your scalping strategy?
There are four main factors that positively affect your scalping activity in forex trading. Learn more about it now and make sure you consider each one of them when trades with your scalping strategy:
- Volatility – here, the sudden change in values is nothing to worry about. However, you only benefit if you place trades at exactly the same bid and offer price.
- Timeline – if you want your scalping approach to work, you have to choose a very short timeframe.
- Risk management – some people offer this in their work, thanks to the simplest rules of hedging , which is another strategy at Forex.
- Liquidity – especially the different spreads should give you different ideas about how to proceed with scalping.
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*Mindesteinzahlung für EU-Händler nicht möglich
Now find out the key principles of traditional forex scalping:
There are some rules and tips that forex experts usually mention when they explain the topic to someone or talk about the scalping issue. Here are most of them:
- Accept the spreads as a bonus or gifts. But do not forget that costs are also such gifts because you have to consider two types of values - the bid and the demand.
- The lower the exposure, the lower the risk.
- If you take small steps, step by step and with little effort, you can make more profit than investing your entire budget immediately on a trade.
- Sometimes finding the right broker is half of a successful scalping trading approach.
- Redundancy is a good thing to consider when you want to insure your risk-free activity. It allows you to open and close trades in more ways than one.
- Do not act chaotically, but always follow one direction, the next market you want to trade, every trade and even every second, because you have to be quick.
- You can declare Scalping as a trading style where you rely on front running. This is due to the fact that your final profit depends on the upcoming increase in market value.
- If you are wondering when to trade, there is a simple rule: Trade, when the liquidity of the currency is high and when the asset volume (for example, GBP) is also high.
- Try to avoid scalping if you are under time pressure, unfocused or even worse – tired. Stress affects your normal analytical thinking, so make sure you take a break, and then you will make money!
- Allow yourself to be informed first. The beginner’s small steps at the beginning of his scalping experience are very important. This will help you understand how scalping works. Otherwise, you will trade with haste and a scheme that can not remain constant and eventually let you down.
- Before you even start a trade, you should establish your trading system in order to „understand“ your scalping activities. Establishing your „Scalps“ means switching from one course to another, also known as switching inside and outside the trading table or a ticket.
Do not hesitate to try Scalping! It’s a great way to improve your forex experience and bring in more color and charm. Every trader needs a strategy, and even if it’s as common as scalping, it’s better than any other action you can do with luck or intuition. Good luck with your forex scalping! Tell us how much you have earned thanks to your first scalping steps! It would be our pleasure to meet you and to rejoice together with you.